[Congressional Record Volume 150, Number 115 (Wednesday, September 22, 2004)]
[Senate]
[Pages S9526-S9534]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mrs. CLINTON:
  S. 2827. A bill to amend the Federal Rules of Evidence to create an 
explicit privilege to preserve medical privacy, to the Committee on the 
Judiciary.
  Mrs. CLINTON. Mr. President, today, I rise to introduce the Patients' 
Privacy Protection Act, legislation that will close a loophole in the 
Federal Rules of Evidence and ensure that every American's medical 
records remain confidential. I want to acknowledge my friend 
Congressman Nadler who is introducing the House companion to this bill 
today as well as Senators Corzine, Wyden, Lautenberg, Boxer, Jeffords, 
and Mikulski who join me as original cosponsors of this critical 
measure.
  I began exploring this issue when I learned that Attorney General 
John Ashcroft had subpoenaed the confidential medical records from 
thousands of women around the country to defend the first-ever Federal 
abortion ban in Federal court. The fact that the women in question were 
not a party to the lawsuits did not deter him.
  Such a deliberate intrusion into people's medical privacy record is 
deeply disturbing. Americans deserve full confidence that the 
government is not looking into their medical records. Without such an 
assurance, how will Americans trust their doctors? What procedures, 
discussions, and diagnoses will they avoid for fear that these records 
could shame them or adversely impact their future if unearthed?
  At issue in this bill is what a reasonable person should expect when 
they walk into a doctor's office. That person expects that what they 
say to her doctor stays with her doctor. Only because of that 
confidence are people able to be honest. And only through that honesty 
are people able to obtain the healthcare they need.
  The right to private medical records is an issue that, in rhetoric at 
least, has broad support on both sides of the partisan divide. In fact, 
it was President Bush himself who, as recently as 2001 during a 
statement on the Medical Privacy Rule said, ``I believe that we must 
protect both vital health care services and the right of every American 
to have confidence that his or her personal medical records will remain 
private.''
  Even Attorney General Ashcroft has made strong statements in support 
of the privacy of medical records. Back in 1998, in a press release put 
out by his Senate office in which he is referred to as a ``consistent 
champion of privacy rights,'' then-Senator Ashcroft says ``We should 
guarantee that the federal government does not undermine an 
individual's fundamental right to privacy . . . Without privacy 
protections in place, people may be discouraged from seeking help or 
taking advantage of the access to health care.''
  I agree. But unlike Attorney General Ashcroft, I believe preserving 
patient privacy entails more than issuing a press release. Patient 
privacy doesn't end when it conflicts with a political agenda, no 
matter how deeply felt that conviction.
  Throughout this Administration, we have seen Attorney General 
Ashcroft disregard civil liberties in the name of preventing terrorism. 
But through this action, we see him disregarding civil rights in the 
name of outlawing abortion. This is a very slippery slope that, if 
unchecked, could affect not just women seeking reproductive healthcare, 
but all Americans. Over the past few months, the Department of Justice 
has asserted that federal law does not recognize the doctor-patient 
privilege, and that individuals no longer have a reasonable expectation 
of medical privacy. These are alarming statements.
  Thankfully, Attorney General Ashcroft is not being allowed to run 
roughshod over our right to privacy and medical confidentiality. On 
March 5, 2004, a San Francisco court ruled that the Department of 
Justice has no right to view the records in question in the Planned 
Parenthood Federation of America lawsuit against the abortion ban. The 
decision issued by Judge Phyllis Hamilton soundly affirmed women's 
right to privacy. She said, ``There is no question that the patient is 
entitled to privacy and protection. 
. . . Women are entitled to not have the government looking at their 
records.''
  Nevertheless, we cannot take a chance that once again, when it suits 
the political or ideological interests of this Administration or 
Administrations to come, the federal government will intrude upon the 
most personal of information. That is why I stand before you today.
  The Patient Privacy Protection Act of 2004 is very simple. It states 
that a patient's medical records and any communication about their 
medical history are confidential unless a judge determines that the 
public interest in those records being made public significantly 
outweighs the patient's privilege. In the cases where a judge orders 
the records to be disclosed, the court shall, to the extent 
practicable, eliminate any and all personally identifiably information.
  I am pleased to be introducing this simple, straightforward, common-
sense piece of legislation. I do not believe there is a Member of 
either Chamber of Congress who in good faith could oppose this measure, 
and I look forward to working with my colleagues, Representative Nadler 
and others to see it enacted into law expediently.

[[Page S9527]]

                                 ______
                                 
      By Mr. McCAIN (for himself, Mr. Feingold, Mr. Lieberman, and Mr. 
        Schumer):
  S. 2828. A bill to amend the Federal Election Campaign Act of 1971 to 
define political committee and clarify when organizations described in 
section 527 of the Internal Revenue Code of 1968 must register as 
political committees, and for other purposes; to the Committee on Rules 
and Administration.
  Mr. McCAIN. Mr. President, I am pleased to be joined by my good 
friend and colleague from Wisconsin, Senator Feingold, and our good 
friends who lead the campaign finance reform fight in the House, 
Representatives Shays and Meehan, in introducing a bill to end the 
illegal practice of 527 groups spending soft money on ads and other 
activities to influence Federal elections.
  As my colleagues know, a number of 527 groups have been raising and 
spending substantial amounts of soft money in a blatant effort to 
influence the outcome of this year's Presidential election. These 
activities are illegal under existing laws, and yet once again, the 
Federal Election Commission (FEC) has failed to do its job and has 
refused to do anything to stop these illegal activities. Therefore, we 
must pursue all possible steps to overturn the FEC's misinterpretation 
of the campaign finance laws, which is improperly allowing 527 groups 
whose purpose is to influence Federal elections to spend soft money on 
these efforts.
  Last week, we filed a lawsuit to overturn the FEC's failure to issue 
regulations to stop these illegal practices by 527 groups. President 
Bush and his campaign filed a similar lawsuit against the FEC last week 
as well, and I also appreciate President Bush's support for the 
legislative effort we begin today on 527s. We are introducing 
legislation that will accomplish the same result. We are going to 
follow every possible avenue to stop 527 groups from effectively 
breaking the law, and doing what they are already prohibited from doing 
by longstanding laws.
  The bill we introduce today is simply. It would require that all 527s 
register as political committees and comply with Federal campaign 
finance laws, including Federal limits on the contributions they 
receive, unless the money they raise and spend is only in connection 
with non-Federal candidate elections, State or local ballot 
initiatives, or the nomination or confirmation of individuals to non-
elected offices.
  Additionally, this legislation would set new rules for Federal 
political committees that spend funds on voter mobilization efforts 
effecting both federal and local races and, therefore, use both a 
federal and a non-Federal account under FEC regulations. The new rules 
would prevent unlimited soft money from being channeled into Federal 
election activities by these Federal political committees.
  Under the new rules, at least half of the funds spent on these voter 
mobilization activities by Federal political committees would have to 
be hard money from their Federal account. More importantly, the funds 
raised for their non-federal account would have to come from 
individuals and would be limited to no more than $25,000 per year per 
donor. Corporations and labor unions could not contribute to these non-
federal accounts. To put it in simple terms, a George Soros could give 
$25,000 per year as opposed to $10 million to finance these activities.
  Let me be perfectly clear on one point here. Our proposal will not 
shut down 527s, it will simply require them to abide by the same 
Federal regulations every other Federal political committee must abide 
by in spending money to influence Federal elections.
  It is unfortunate that we even need to be here introducing this bill 
today. This legislation would not be necessary if it weren't for the 
abject failure of the FEC to enforce existing laws. As my colleagues 
well know, some organizations, registered under section 527 of the 
Internal Revenue Code, have had a major impact on this year's 
presidential election by raising and spending illegal soft money to run 
ads attacking both President Bush and Senator Kerry. The use of soft 
money to finance these activities is clearly illegal under current 
statute, and the fact that they have been allowed to continue unchecked 
is unconscionable.
  The blame for this lack of enforcement does not lie with the 
Congress, nor with the Administration. The blame for this continuing 
illegal activity lies squarely with the FEC. This agency has a duty to 
issue regulations to properly implement and enforce the nation's 
campaign laws--and the FEC has failed, and it has failed miserably to 
carry out that responsibility. The Supreme Court found that to be the 
case in its McConnell decision and Judge Kollar-Kotelly found that to 
be the case in her recent decision overturning 15 regulations 
incorrectly adopted by the FEC to implement the new BCRA law. That is 
why a Los Angeles Times editorial today stated that, ``her decision 
would make a fitting obituary for an agency that deserves to die.''
  It should be clear by now why we have introduced legislation to 
abolish the FEC and replace it with a new enforcement agency. And we 
will be conducting a major effort starting at the beginning of next 
year to enact our bill to get a new, true enforcement agency and to 
pass the 527 reform act we are introducing today. We are not going to 
allow the destructive FEC to continue to undermine the nation's 
campaign finance laws as it has been consistently doing for the past 
two decades. In the mean time, given the unmitigated failure of this 
agency, I believe that its Chair, Bradley Smith and its Vice Chair, 
Ellen Weintraub, should resign and recognize that they have failed to 
carry out their responsibilities as public officials.
  Opponents of campaign reform like to point out that the activities of 
these 527s serve as proof that the Bipartisan Campaign Reform Act of 
2002 (BCRA) has failed in its stated purpose to eliminate the 
corrupting influence of soft money in our political campaigns. Let me 
be perfectly clear on this. The 527 issue has nothing to do with BCRA, 
it has everything to do with the 194 law and the failure of the FEC to 
do its job and properly regulate the activities of these groups.
  As further evidence of the FEC's lack of capability, let me quote 
from a couple of recent court decisions which highlight this agency's 
shortcomings. First, in its decision upholding the constitutionality of 
BCRA in McConnell v. FEC, the U.S. Supreme Court stated that the FEC 
had ``subverted'' the law, issued regulations that ``permitted more 
than Congress had ever intended,'' and ``invited widespread 
circumvention'' of FECA's limited on contributions. Additionally, just 
this past Saturday, a federal district court judge threw out 15 of the 
FEC's regulations implementing BCRA. Among the reasons for her actions 
were that one provision ``severely undermines FECA'' and would ``foster 
corruption'', another ``runs completely afoul'' of current law, another 
would ``render the statute largely meaningless'' and, finally, that 
another had ``no rational basis.''

  The track record of the FEC is clear, and by their continued 
stonewalling, the Commission has proven itself to be nothing more than 
a bureaucratic nightmare, and the time has come to put an end to its 
destructive tactics. The FEC has had ample, and well documented, 
opportunities to address the issue of the 527s illegal activities, and 
each time they have taken a pass, choosing instead to delay, postpone, 
and refuse to act.
  Enough is enough. It is time to stop wasting taxpayer's dollars on an 
agency that runs roughshod over the will of the Congress, the Supreme 
Court, the American people, and the Constitution. We've fought too long 
and too hard to sit back and allow this worthless agency to undermine 
the law.
  So, here is the bottom line: if the FEC won't do its job, and its 
commissioners have proven time and time again that they won't, then 
we'll do it for them. The bill Senator Feingold and I introduce today 
will put an end to the abusive, illegal practices of these 527s. And we 
will fight beginning next year to replace this rogue agency with a real 
enforcement agency.
  I urge my colleagues to support swift passage of these bills and put 
an end to this problem once and for all.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2828

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

[[Page S9528]]

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``527 Reform Act of 2004''.

     SEC. 2. TREATMENT OF SECTION 527 ORGANIZATIONS.

       (a) Definition of Political Committee.--Section 301(4)(A) 
     of the Federal Election Campaign Act of 1971 (2 U.S.C. 
     431(4)(A)) is amended to read as follows:
       ``(A) any committee, club, association, or other group of 
     persons that--
       ``(i) during one calendar year, receives contributions 
     aggregating in excess of $1,000 or makes expenditures 
     aggregating in excess of $1,000; and
       ``(ii) has as its major purpose the nomination or election 
     of one or more candidates;''.
       (b) Definition of Major Purpose for Section 527 
     Organizations.--Title III of the Federal Election Campaign 
     Act of 1971 (2 U.S.C. 431 et seq.) is amended by adding at 
     the end the following new section:

     ``SEC. 325. DEFINITIONS AND RULES FOR DETERMINING 
                   ORGANIZATIONS AND DISBURSEMENTS INFLUENCING 
                   FEDERAL ELECTIONS.

       ``(a) Major Purpose of Section 527 Organizations.--For 
     purposes of section 301(4)(A)--
       ``(1) In general.--A committee, club, association, or group 
     of persons that--
       ``(A) is an organization described in section 527 of the 
     Internal Revenue Code of 1986, and
       ``(B) is not described in paragraph (2),

     has as its major purpose the nomination or election of one or 
     more candidates.
       ``(2) Excepted organizations.--Subject to paragraph (3), a 
     committee, club, association, or other group of persons 
     described in this paragraph is--
       ``(A) an organization described in section 527(i)(5) of the 
     Internal Revenue Code of 1986, or
       ``(B) any other organization which is one of the following:
       ``(i) A committee, club, association, or other group of 
     persons whose election or nomination activities relate 
     exclusively to elections where no candidate for Federal 
     office appears on the ballot.
       ``(ii) A committee, club, association, or other group of 
     persons that is organized, operated, and makes disbursements 
     exclusively for one or more of the following purposes:

       ``(I) Influencing the selection, nomination, election, or 
     appointment of one or more candidates to non-Federal offices.
       ``(II) Influencing one or more State or local ballot 
     initiatives, State or local referenda, State or local 
     constitutional amendments, State or local bond issues, or 
     other State or local ballot issues.
       ``(III) Influencing the selection, appointment, nomination, 
     or confirmation of one or more individuals to non-elected 
     offices.
       ``(IV) Paying expenses described in the last sentence of 
     section 527(e)(2) of the Internal Revenue Code of 1986 or 
     expenses of a newsletter fund described in section 527(g) of 
     such Code.

       ``(3) Section 527 organizations making certain 
     disbursements.--A committee, club, association, or other 
     group of persons described in paragraph (2)(B) shall not be 
     considered to be described in such paragraph for purposes of 
     paragraph (1)(B) if it makes disbursements for a public 
     communication that promotes, supports, attacks, or opposes a 
     clearly identified candidate for Federal office during the 
     period beginning on the first day of the calendar year 
     preceding the calendar year in which the general election for 
     the office sought by the clearly identified candidate occurs 
     and ending on the date of the general election.''.

     SEC. 3. CERTAIN EXPENSES BY MAJOR PURPOSE ORGANIZATIONS 
                   TREATED AS EXPENDITURES.

       (a) In General.--Section 301(9)(A)(i) of the Federal 
     Election Campaign Act of 1971 (2 U.S.C. 431(9)(A)(i)) is 
     amended by inserting ``, including any amount described in 
     section 325(b)'' after ``office''.
       (b) Applicable Communications.--Section 325 of the Federal 
     Election Campaign Act of 1971 (as added by section 2(b)) is 
     amended by adding at the end the following new subsection:
       ``(b) Certain Expenditures for Major Purpose 
     Organizations.--
       ``(1) In general.--Subject to paragraph (2), a purchase, 
     payment, distribution, loan, advance, deposit, or gift of 
     money or anything of value for--
       ``(A) a public communication that refers to a clearly 
     identified candidate for Federal office or to a political 
     party (regardless of whether a candidate for State or local 
     office is also mentioned or identified) and that promotes, 
     supports, attacks, or opposes a candidate for that office or 
     a political party (regardless of whether the communication 
     expressly advocates a vote for or against a candidate), or
       ``(B) voter registration activity, voter identification, 
     get-out-the-vote activity, or generic campaign activity 
     conducted in connection with an election in which a candidate 
     for Federal office appears on the ballot (regardless of 
     whether a candidate for State or local office also appears on 
     the ballot),

     shall be an expenditure under section 301(9)(A)(i) if made 
     by, or on behalf of, a political committee (as defined in 
     section 301(4)) or a committee, club, association, or other 
     group of persons for which the nomination or election of one 
     or more candidates is its major purpose.
       ``(2) Exception.--Any funds used for purposes described in 
     paragraph (1) that, in accordance with allocation rules set 
     forth in section 325(c), are disbursed from a non-Federal 
     account shall not be treated as expenditures.''.

     SEC. 4. RULES FOR ALLOCATION OF EXPENSES BETWEEN FEDERAL AND 
                   NON-FEDERAL ACTIVITIES.

       Section 325 of the Federal Election Campaign Act of 1971 
     (as added by section 2(b) and amended by section 3) is 
     amended by adding at the end the following:
       ``(c) Allocation and Funding Rules for Expenses of Separate 
     Segregated Funds and Nonconnected Committees Relating to 
     Federal and Non-Federal Activities.--
       ``(1) In general.--In the case of any disbursements by any 
     separate segregated fund or nonconnected committee for which 
     allocation rules are provided under paragraph (2)--
       ``(A) the disbursements shall be allocated between Federal 
     and non-Federal accounts in accordance with this subsection 
     and regulations prescribed by the Commission, and
       ``(B) in the case of disbursements allocated to non-Federal 
     accounts, may be paid only from a qualified non-Federal 
     account.
       ``(2) Costs to be allocated and allocation rules.--
     Disbursements by any separate segregated fund or nonconnected 
     committee in connection with Federal and non-Federal 
     elections for any of the following categories of activity 
     shall be allocated as follows:
       ``(A) At least 50 percent of any administrative expenses, 
     including rent, utilities, office supplies, and salaries not 
     attributable to a clearly identified candidate shall be paid 
     with funds from a Federal account, except that for a separate 
     segregated fund such expenses may be paid instead by its 
     connected organization.
       ``(B) At least 50 percent of the direct costs of a 
     fundraising program or event, including disbursements for 
     solicitation of funds and for planning and administration of 
     actual fundraising events, where Federal and non-Federal 
     funds are collected through such program or event shall be 
     paid with funds from a Federal account, except that for a 
     separate segregated fund such costs may be paid instead by 
     its connected organization.
       ``(C) At least 50 percent of the expenses for public 
     communications or voter drive activities that refer to a 
     political party, but do not refer to any clearly identified 
     Federal or non-Federal candidate, shall be paid with funds 
     from a Federal account.
       ``(D) 100 percent of the expenses for public communications 
     or voter drive activities that refer to a political party, 
     and refer to one or more clearly identified Federal 
     candidates, but do not refer to any clearly identified non-
     Federal candidates, shall be paid with funds from a Federal 
     account.
       ``(E) At least 50 percent of the expenses for public 
     communications or voter drive activities that refer to a 
     political party, and refer to one or more clearly identified 
     non-Federal candidates, but do not refer to any clearly 
     identified Federal candidates, shall be paid with funds from 
     a Federal account, except that this subparagraph shall not 
     apply to communications or activities that relate exclusively 
     to elections where no candidate for Federal office appears on 
     the ballot.
       ``(F) At least 50 percent of the expenses for public 
     communications and voter drive activities that refer to one 
     or more clearly identified candidates for Federal office and 
     one or more clearly defined non-Federal candidates, without 
     regard to whether the communication refers to a political 
     party, shall be paid with funds from a Federal account.
       ``(3) Qualified non-federal account.--For purposes of this 
     subsection--
       ``(A) In general.--The term `qualified non-Federal account' 
     means an account which consists solely of amounts--
       ``(i) that, subject to the limitations of subparagraphs (B) 
     and (C), are raised by the separate segregated fund or 
     nonconnected committee only from individuals, and
       ``(ii) with respect to which all other requirements of 
     Federal, State, or local law are met.
       ``(B) Limitation on individual donations.--
       ``(i) In general.--A separate segregated fund or 
     nonconnected committee may not accept more than $25,000 in 
     funds for its qualified non-Federal account from any one 
     individual in any calendar year.
       ``(ii) Affiliation.--For purposes of this subparagraph, all 
     qualified non-Federal accounts of separate segregated funds 
     or nonconnected committees which are directly or indirectly 
     established, financed, maintained, or controlled by the same 
     person or persons shall be treated as one account.
       ``(C) Fundraising limitation.--No donation to a qualified 
     non-Federal account may be solicited, received, directed, 
     transferred, or spent by or in the name of any person 
     described in subsection (a) or (e) of section 323.
       ``(4) Voter drive activity and federal account defined.--
     For purposes of this subsection--
       ``(A) Voter drive activity.--The term `voter drive 
     activity' means any of the following activities conducted in 
     connection with an election in which a candidate for Federal 
     office appears on the ballot (regardless of whether a 
     candidate for State or local office also appears on the 
     ballot):
       ``(i) Voter registration activity.
       ``(ii) Voter identification.
       ``(iii) Get-out-the-vote activity.
       ``(iv) Generic campaign activity.
       ``(B) Federal account.--The term `Federal account' means an 
     account which consists

[[Page S9529]]

     solely of contributions subject to the limitations, 
     prohibitions, and reporting requirements of this Act. Nothing 
     in this subsection or in section 323(b)(2)(B)(iii) shall be 
     construed to infer that a limit other than the limit under 
     section 315(a)(1)(C) applies to contributions to the 
     account.''.

     SEC. 5. CONSTRUCTION.

       No provision of this Act, or amendment made by this Act, 
     shall be construed--
       (1) as approving, ratifying, or endorsing a regulation 
     promulgated by the Federal Election Commission, or
       (2) as establishing, modifying, or otherwise affecting the 
     definition of political organization for purposes of the 
     Internal Revenue Code of 1986.

     SEC. 6. EFFECTIVE DATE.

       The amendments made by this Act shall take effect on 
     January 1, 2005.

  Mr. FEINGOLD. Mr. President, I am pleased to once again be working 
with my partner in reform, the Senator from Arizona, Senator McCain, 
and also with the Senator from Connecticut, Senator Lieberman, who was 
so instrumental in getting the 527 disclosure bill passed in 2000. We 
are introducing today the 527 Reform Act of 2004. This bill will do 
what the FEC could and should do under current law, but, once again, 
has failed to do.
  It sometimes seems like our mission in life is to clean up the mess 
that the FEC has made. We had to do that with BCRA, the Bipartisan 
Campaign Reform Act, which passed in 2002, closing the soft money 
loophole that the FEC created in the late '70s and expanded in the 
'90s. We are doing it again with the regulations that the FEC put in 
place after BCRA passed. Just this past weekend an extraordinary court 
decision came down that threw out 15 of the 19 FEC regulations 
challenged by Representatives Shays and Meehan in a lawsuit under the 
Administrative Procedures Act. That decision was an extraordinary 
rebuke to a Federal agency.
  And now we are here to introduce a bill that will make absolutely 
clear that the Federal election laws apply to 527 organizations. Let me 
emphasize one thing. We believe that current Federal election law 
requires these groups to register as political committees and stop 
raising and spending soft money. But the FEC has failed to enforce the 
law, saying it is too complicated or that it is too late in the 
election cycle to take action. Those excuses are unacceptable, so we 
must act in the Congress.
  This bill will require all 527s to register as political committees 
unless they fall into a number of narrow exceptions. The exceptions are 
basically for groups that Congress exempted from disclosure 
requirements because they are so small or for groups that are involved 
exclusively in State election activity.
  Once a group registers as a political committee, certain activities 
such as ads that mention only Federal candidates will have to be paid 
for solely with hard money. But the FEC permits Federal political 
committees to maintain a non-Federal account to pay a portion of the 
expenses of activities that affect both Federal and non-Federal 
elections. Our bill sets new allocation rules that will make sure that 
these allocable activities are paid for with at least 50 percent hard 
money.
  Finally, the bill makes an important change with respect to the non-
Federal portion of the allocable activities. We put a limit of $25,000 
per year on the contributions that can be accepted for that non-Federal 
account. And we prohibit corporate or union funds from being given to 
those non-Federal accounts. So no more will million dollar soft money 
contributions be used to pay for get-out-the-vote efforts in the 
Presidential campaign.
  Nothing in this bill will affect 501(c) advocacy groups. The bill 
only applies to groups that claim a tax exemption under section 527. 
And it would be effective in the next election cycle, not this one.
  The soft money loophole was opened by FEC rulings in the late '70s. 
By the time we started work on BCRA, the problem had mushroomed and led 
to the scandals we saw in the 1996 campaign. When we passed BCRA, I 
said we would have to be vigilant to make sure that the FEC enforced 
the law and that similar loopholes did not develop. That is what we 
have been doing for the past 2 years, and what are again doing today.
  I have no doubt that if we don't act on this 527 problem now, we will 
see the problem explode into scandals over the next few election 
cycles. This time we're not going to wait.
  I ask unanimous consent that the text of our bill and a section-by-
section analysis be printed in the Record.
  There being no objection, the analysis was ordered to be printed in 
the Record, as follows:

           527 Reform Act of 2004 Section-by-Section Analysis

       Section 1. Short Title. The bill may be cited as the ``527 
     Reform Act of 2004.''
       Section 2. Treatment of Section 527 Organizations. This 
     section revises the definition of ``political committee'' in 
     the Federal Election Campaign Act (``FECA'') to add the 
     requirement that an organization ``has as its major purpose 
     the nomination or election of one or more candidates.'' This 
     language is taken from the Supreme Court's decision in 
     Buckley v. Valeo, which added this ``major purpose'' test to 
     the existing statutory definition that a ``political 
     committee'' is a group that raises or spends $1,000 or more 
     in a year in contributions or expenditures to influence 
     federal elections. The ``major purpose'' test has not 
     previously been codified.
       This section also provides that 527 organizations have the 
     ``major purpose'' of nominating or electing candidates, and 
     thus satisfy that portion of the test for political committee 
     status, unless they meet one of the following exceptions:
       (1) has annual receipts of less than $25,000;
       (2) is the campaign committee of a non-Federal candidate;
       (3) is a state or local party committee;
       (4) is devoted exclusively to election activities relating 
     to an election where no candidate for federal office appears 
     on the ballot;
       (5) raises and spends money exclusively for the selection, 
     nomination, election or appointment of non-Federal 
     candidates;
       (6) raises and spends money exclusively to influence state 
     or local ballot initiatives, referenda, constitutional 
     amendments, bond issues, or other ballot measures;
       (7) raises and spends money exclusively to influence the 
     selection, appointment, nomination, or confirmation of 
     individuals to non-elected offices.
       An organization that makes a disbursement for a public 
     communication that promotes, supports, attacks or opposes a 
     clearly identified candidate for Federal office during the 
     two-year election cycle of that candidate cannot qualify for 
     exceptions (2)-(7) above.
       Section 3. Certain Expenses by Major Purpose Organizations 
     Treated as Expenditures. This section supplements the 
     definition of ``expenditure'' for any organization whose 
     ``major purpose'' is the nomination or election of one or 
     more candidates. (This goes to the other portion of the test 
     for ``political committee'' status: whether a group with a 
     ``major purpose'' to influence federal elections spends 
     $1,000 in ``expenditures'' in a year.)
       Payments for the following activities by ``major purpose'' 
     organizations, which under Section 2 include 527 
     organizations involved in Federal elections, will be 
     considered expenditures:
       (1) public communications that promote, support, attack, or 
     oppose a clearly identified Federal candidate or a political 
     party;
       (2) voter registration activity, voter identification, get-
     out the vote activity, or generic campaign activity conducted 
     in connection with an election where a Federal candidate 
     appears on the ballot.
       Section 4. Rules for Allocation of Expenses Between Federal 
     and Non-Federal Candidates. This section provides allocation 
     rules for political committees (other than candidate 
     committees or political party committees) that engage in both 
     Federal and non-Federal election activities. If a political 
     committee engages in activities that mention a clearly 
     identified Federal candidate or candidates, or a political 
     party generally, it must fund at least 50% of those 
     activities from a Federal account that contains only hard 
     money, even if such activities also mention, or are for the 
     benefit of, non-Federal candidates. The other portion may be 
     funded from a ``qualified non-Federal account.'' An activity 
     that mentions both Federal candidates and a political party 
     generally must be paid for entirely with hard money. These 
     allocation rules apply to administrative expenses, the costs 
     of fundraising programs or events, public communications, and 
     voter drive activities, which are defined in this section as 
     voter registration, voter identification, get out the vote, 
     and generic campaign activities.
       The section also provides that contributions to ``qualified 
     non-Federal accounts'' used to pay the non-Federal portion of 
     expenses that are allocated under this section must come only 
     from individuals and may not exceed $25,000 per donor per 
     year. ($25,000 per year is the same contribution limit that 
     applies to contributions by individuals to national party 
     committees.) Individuals can contribute $5,000 per donor per 
     year to the Federal account of political committees.
       Section 5. Construction. This section provides that the 527 
     Reform Act shall not be construed as approving, ratifying, or 
     endorsing any regulation issued by the FEC. It therefore will 
     have no effect on pending litigation concerning regulations 
     issued by the FEC to implement the Bipartisan Campaign Reform 
     Act of 2002. The Act also shall not be construed to 
     establish, modify, or otherwise affect the definition of 
     political organization for purposes of the Internal Revenue 
     Code.
       Section 6. Effective Date. The amendments made by the 527 
     Reform Act shall take effect

[[Page S9530]]

     on January 1, 2005. They will have no effect on the 2004 
     elections.

  Mr. LIEBERMAN. Mr. President, I rise today as a cosponsor of the 
legislative efforts of my friends and colleagues Senators McCain and 
Feingold to close the ``527'' loophole that threatens the health of our 
Federal elections by allowing unlimited amounts of soft money to 
dictate the terms of debate in defiance of the letter and spirit of the 
McCain-Feingold Bipartisan Campaign Reform Act.
  These 527 groups have become nothing more than multi-million dollar 
megaphones advocating the special interests of wealthy individuals and 
groups. And it will only get worse in years to come.
  527 groups have been growing since the mid-1990s thanks to loopholes 
resulting in part from puzzling decisions by the Internal Revenue 
Service and the Federal Election Commission.
  The 527 groups would get tax-exempt status from the IRS by claiming 
they existed to influence elections. But then they would avoid election 
disclosure laws by denying to the Federal Election Commission they were 
trying to influence elections because they did not use the magic words 
like ``vote for'' or ``vote against.''
  The result was a tax exemption for groups influencing Federal 
campaigns, but a lack of disclosure so voters did not know who the 
groups were, who they gave their money to and where they got their 
money from.
  Congress partially closed this loophole in June 2000, by passing the 
first significant campaign finance reform measure in a quarter century. 
This legislation was passed out of the Government Affairs Committee, of 
which I was chairman at the time, and signed into law later that year 
by President Clinton.
  The new law required 527 groups to give notice of their intent to 
claim tax-exempt status; to disclose information about their large 
contributors and expenditures; and to file annual informational returns 
along the lines of those filed by virtually all other tax-exempt 
organizations.
  But this only partially closed this loophole. Despite the McCain-
Feingold campaign finance reforms, 527s can still raise unlimited 
amounts of cash from just a few wealthy individuals or groups whose 
interests and motivations are likely unknown to the American public. 
The Federal Election Commission could have closed this loophole but has 
failed to act despite massive evidence that 527s are skirting Federal 
election law.
  This is both an end-run around our campaign finance laws as well as a 
direct assault on our democracy. Elections should be determined by 
millions of individual voters who cast their ballots uninfluenced by 
the millions of dollars of advertising paid for a by a few individuals 
or groups with special interests.
  Reform of the 527 loophole does not mean silencing these groups or 
taking away their right to put their message on the air. All this 
reform would require from 527s is to follow the same rules as other 
political advocacy groups when it comes to raising and spending money 
on federal elections. The money must come from individuals in amounts 
no larger than $5,000, with no contributions from corporations or 
unions allowed.
  If the 527 groups' support is as widespread as they claim, they will 
have no problem getting their message out.
  We started the job in 2000. We knew it was not enough. Now it's time 
to finish the job and get unlimited soft money out of the system.
  The voices of millions of average Americans should not be reduced to 
a whisper because they can't afford the price of the pulpit.
  And the voices of a few should not shout like thunder because they 
have the money to command the air waves.
                                 ______
                                 
      By Mr. ALLARD (for himself and Mrs. Dole):
  S. 2829. A bill to establish a grant program administered under an 
agreement among the Secretaries of Housing and Urban Development, 
Health and Human Services, and Veterans Affairs, in consultation with 
the U.S. Interagency Council on Homelessness, to address the goal of 
ending chronic homelessness through coordinated provision of housing, 
health care, mental health and substance abuse treatment, and 
supportive and other services, including assistance in accessing non-
homeless specific benefits and services, and for other purposes; to the 
Committee on Banking, Housing, and Urban Affairs.
  Mr. ALLARD. Mr. President, I rise today to introduce the Samaritan 
Initiative Act of 2004, and I am pleased to have Senator Dole join me 
in this effort. The Samaritan Initiative would mark the beginning of a 
new, collaborative approach in the Federal effort to end chronic 
homelessness.
  The Initiative would create a groundbreaking joint effort between the 
Department of Housing and Urban Development, the Department of Health 
and Human Resources, and the Department of Veterans Affairs. Each 
department would contribute money to a joint fund and would coordinate 
in the effort to end chronic homelessness. This coordinated approach 
will streamline the grants application process and will ensure 
consistent standards. It will also ensure that each department 
continues to provide its own particular expertise. I am hopeful that 
other Federal agencies will join in the effort as well.
  Homeless individuals often have needs far beyond simple shelter; they 
may need assistance with healthcare, substance abuse, mental illness, 
job training, or other basics of life. Providing shelter without any 
supportive services may fail to address some of the underlying problems 
that can cause an individual to become, and remain, homeless.
  By addressing the comprehensive needs of homeless individuals, the 
Samaritan Initiative will help reduce incidents of chronic 
homelessness. According to the Interagency Council on Homelessness, 
this 10 percent of the homeless population consumes more than half of 
the resources. The Samaritan Initiative will help provide the flexible 
resources necessary to move chronically homeless individuals into 
stable, permanent, supportive housing, which will in turn free up other 
resources.
  For many years now I have been a strong advocate for the Government 
Performance and Results Act, which requires a focus on outcomes through 
clear, measurable goals. I am pleased to say that the Samaritan 
Initiative embodies this outcome-based focus and requires visible, 
measurable, quantifiable performance outcomes in reducing and ending 
homelessness. A focus on outcomes, rather than case management or 
process, also allows for new, innovative solutions to chronic 
homelessness. This will ensure that taxpayer dollars are spent in a 
responsible, effective manner.
  I am proud to say that the Samaritan Initiative is supported by The 
U.S. Conference of Mayors, The National Association of Counties, The 
National League of Cities, The Enterprise Foundation, The National 
Alliance for the Mentally Ill, the National AIDS Housing Coalition, The 
National Alliance to End Homelessness, The Corporation for Supportive 
Housing, the Association for Service Disabled Veterans, the National 
Coalition for Homeless Veterans, and many other groups. I look forward 
to working with them, along with my colleagues in the Senate, to end 
chronic homelessness in America.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2829

       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 ``Samaritan Initiative Act of 
     2004''.

     SEC. 2. SAMARITAN INITIATIVE.

        Title IV of the McKinney-Vento Homeless Assistance Act (42 
     U.S.C. 11136 et seq.) is amended by adding at the end the 
     following:

                   ``Subtitle H--Samaritan Initiative

     ``SEC. 495. PURPOSE.

       ``The purpose of this subtitle is to authorize competitive 
     grants for coordinated comprehensive housing, treatment, and 
     support services to chronically homeless persons--
       ``(1) to reduce the prevalence of chronic homelessness;
       ``(2) to support promising strategies to move chronically 
     homeless persons in urban and rural communities from the 
     streets to safe, permanent housing;
       ``(3) to provide for integrated systems of services to 
     improve the effectiveness of programs serving chronically 
     homeless persons;
       ``(4) to promote self-sufficiency and recovery among 
     chronically homeless persons; and

[[Page S9531]]

       ``(5) to encourage programs serving chronically homeless 
     persons to promote access to Federal, State, and local non-
     homeless specific programs of assistance for which such 
     persons are eligible.

     ``SEC. 495A. DEFINITIONS.

       ``For purposes of this subtitle, the following definitions 
     shall apply:
       ``(1) Chronically homeless person.--The term `chronically 
     homeless person' means an unaccompanied individual with a 
     disabling condition who--
       ``(A) has been sleeping in 1 or more places not meant for 
     human habitation, or in 1 or more emergency homeless 
     shelters, for longer than 1 year; or
       ``(B) has had 4 or more periods of homelessness that, in 
     total, have lasted more than 3 years.
       ``(2) Disabling condition.--The term `disabling condition' 
     means a diagnosable substance use disorder, serious mental 
     illness, developmental disability, or chronic physical 
     illness or disability, including the co-occurrence of 2 or 
     more of such conditions, that limits the ability of an 
     individual to work or perform one or more activities of daily 
     living.
       ``(3) Eligible entity.--The term `eligible entity' means a 
     State, unit of general local government, public housing 
     agency, local workforce investment board, or private 
     nonprofit organization, including a faith-based or community-
     based organization.
       ``(4) Eligible veteran.--The term `eligible veteran' means 
     a person who served in the active United States military, 
     naval, or air service, and who was discharged or released 
     under conditions other than dishonorable.
       ``(5) Homeless management information system.--The term 
     `homeless management information system' shall means a 
     computerized data collection application maintained by an 
     eligible entity, that--
       ``(A) enumerates the homeless population within the 
     jurisdiction of the eligible entity and the number of 
     homeless individuals that received services from the eligible 
     entity; and
       ``(B) compiles information on the characteristics and 
     service needs of homeless individuals.
       ``(6) Homelessness.--The term `homelessness' means sleeping 
     in a place not meant for human habitation or in an emergency 
     homeless shelter.
       ``(7) Interagency implementation and monitoring team.--The 
     term `interagency implementation and monitoring team' means 
     the interagency implementation and monitoring team 
     established under section 495B(d).
       ``(8) Participating federal agency.--The term 
     `participating Federal agency' means the Departments of 
     Housing and Urban Development, Health and Human Services, and 
     Veterans Affairs, or any other Federal agency that may 
     receive appropriations for purposes of participating under 
     the provisions of this subtitle.
       ``(9) Private nonprofit organization.--The term `private 
     nonprofit organization' means a private organization--
       ``(A) no part of the net earnings of which inures to the 
     benefit of any member, founder, contributor, or individual;
       ``(B) that has a voluntary board; and
       ``(C) that has an accounting system or a designated fiscal 
     agent in accordance with requirements established by the 
     participating Federal agencies.
       ``(10) Public housing agency.--The term `public housing 
     agency' has the same meaning as in section 3(b)(6) of the 
     United States Housing Act of 1937 (42 U.S.C. 1437a(b)(6)).
       ``(11) State.--The term `State' means any State of the 
     United States, the District of Columbia, the Commonwealth of 
     Puerto Rico, the Virgin Islands, Guam, American Samoa, the 
     Northern Mariana Islands, or any agency or instrumentality 
     thereof that is established pursuant to legislation and 
     designated by the chief executive officer to act on behalf of 
     the State with regard to provisions of this subtitle.
       ``(12) Unit of general local government.--The term `unit of 
     general local government' means--
       ``(A) a city, town, township, county, parish, village, or 
     other general purpose political subdivision of a State; and
       ``(B) any agency or instrumentality thereof that is 
     established pursuant to legislation and designated by the 
     chief executive officer to act on behalf of the jurisdiction 
     with regard to provisions of this subtitle.

     ``SEC. 495B. GRANT AUTHORITY AND ADMINISTRATION.

       ``(a) In General.--The participating Federal agencies shall 
     enter into a cooperative agreement to make and administer 
     competitive grants to eligible entities, including faith-
     based and community-based organizations, in accordance with 
     the provisions of this subtitle for the purpose of providing 
     treatment and support services that are coordinated with the 
     provision of housing for chronically homeless persons.
       ``(b) Delegations.--No provision of this subtitle shall 
     limit the ability of the participating Federal agencies to 
     delegate, assign, or share administrative responsibilities as 
     the participating Federal agencies may determine to be 
     necessary or appropriate.
       ``(c) Coordination Among Participating Federal Agencies.--
     The Secretary of Housing and Urban Development shall 
     coordinate with the participating Federal agencies to 
     implement and administer the grant program established under 
     this subtitle.
       ``(d) Interagency Implementation and Monitoring Team.--The 
     participating Federal agencies shall establish an interagency 
     implementation and monitoring team to review and conduct 
     oversight of the award of grants, and the use of grant funds 
     awarded under this subtitle. Each participating Federal 
     agency shall appoint appropriate designees to serve on the 
     interagency implementation and monitoring team.
       ``(e) Coordination Requirements.--
       ``(1) In general.--In carrying out this subtitle, the 
     interagency implementation and monitoring team shall, as 
     appropriate and to the extent feasible, establish uniform or 
     coordinated requirements, standards, procedures, and 
     timetables with respect to--
       ``(A) application procedures and grant requirements, 
     including those providing for--
       ``(i) a single consolidated application form; and
       ``(ii) a single timetable, location, and procedure for 
     filing of a consolidated application;
       ``(B) criteria for the award of grants;
       ``(C) a coordinated process for review and the approval or 
     denial of the consolidated application;
       ``(D) the establishment of performance standards and 
     measures of performance outcomes, including--
       ``(i) the requirement that the Secretary of Housing and 
     Urban Development attempt to quantify the reduction in 
     chronic homelessness; and
       ``(ii) the requirement that, where applicable, the grantees 
     utilize a homeless management information system;
       ``(E) oversight, including monitoring, audits, and 
     evaluations of grantees, and requirements for annual reports 
     by grantees; and
       ``(F) such other factors that the interagency 
     implementation and monitoring team determines are necessary 
     or appropriate.
       ``(2) Performance assessment.--
       ``(A) In general.--The interagency implementation and 
     monitoring team shall establish such performance standards, 
     performance measures, and annual reporting requirements, and 
     make such performance reviews and audits as may be necessary 
     or appropriate--
       ``(i) to determine whether a grantee has carried out its 
     activities in a timely manner and in accordance with the 
     applicable requirements of this subtitle;
       ``(ii) to assess the effectiveness of a grantee in 
     accomplishing the objectives of this subtitle; and
       ``(iii) for other purposes as the interagency 
     implementation and monitoring team determines significant 
     with respect to the performance assessment of a grantee.
       ``(B) Provision of support and staff.--The Secretary of 
     Veterans Affairs may provide program monitoring and 
     evaluation services and staff to participating Federal 
     agencies. In such cases, participating Federal agencies may 
     reimburse the Department of Veterans Affairs for the cost of 
     such staff and services.
       ``(f) Provisions and Requirements Applicable to Grants 
     Under This Subtitle.--
       ``(1) In general.--A grantee under this subtitle shall 
     establish and operate a system of assistance to chronically 
     homeless persons that identifies such persons and provides 
     them access to affordable permanent housing that is 
     coordinated with appropriate treatment and support.
       ``(2) Required grantee activities.--A grantee under this 
     subtitle shall carry out, directly or through arrangements 
     with a network of other entities, activities relating to the 
     housing, treatment, and support of homeless persons, which 
     may include the following:
       ``(A) Housing activities.--Eligible activities specified in 
     section 495C(a) that ensure the placement of chronically 
     homeless persons in safe, affordable, permanent housing.
       ``(B) Treatment and support activities.--Eligible 
     activities specified in section 495D(a) to address the 
     multiple physical health, mental health, and substance abuse 
     treatment needs of chronically homeless persons who are 
     eligible for or residents in housing under section 495C(a).
       ``(C) Service coordination.--Activities, including those 
     coordinated with local planning bodies, that promote the 
     access of eligible chronically homeless persons to a range of 
     services that contribute to self-sufficiency, recovery, 
     employment, stability in housing, and access to health care.
       ``(D) Administration.--Administrative and planning 
     activities, including the development and implementation of 
     comprehensive plans for housing and services at the grantee 
     level with costs not to exceed 6 percent of total costs of 
     carrying out the program under this subtitle.
       ``(E) Other services.--Such services and activities as the 
     participating Federal agencies may find necessary and 
     appropriate.
       ``(3) Criteria for grant award.--In awarding grants under 
     this subtitle, the participating Federal agencies shall 
     consider--
       ``(A) the extent to which the applicant demonstrates an 
     understanding of the unique characteristics of chronically 
     homeless persons;
       ``(B) the adequacy of the approach of the applicant in 
     addressing the needs of the chronically homeless;
       ``(C) the capacity of the applicant to carry out and 
     sustain required activities;
       ``(D) where services are to be provided through a network 
     of entities, the adequacy of the qualifications of such 
     entities, and the

[[Page S9532]]

     stated willingness of such entities, to collaborate and 
     participate in carrying out proposed activities;
       ``(E) the extent to which the applicant has been involved 
     in Federal, State, or local non-homeless specific programs of 
     assistance that could provide additional assistance to 
     eligible chronically homeless persons;
       ``(F) the commitment and the demonstrated ability of the 
     applicant to achieve the reduction in the number of 
     chronically homeless persons; and
       ``(G) such additional factors as the participating Federal 
     agencies may determine significant or necessary with respect 
     to the potential success of the applicant in carrying out the 
     purposes of this subtitle.
       ``(4) Initial term of grant.--Notwithstanding any other 
     provision of law, each grant awarded under this section shall 
     be for an initial term of 3 years.
       ``(5) Grant renewal.--Upon the expiration of a grant under 
     this section, the participating Federal agencies may award, 
     on a competitive basis, a renewal grant under this subtitle 
     for an additional 3-year term, subject to the continued 
     qualification of the grantee for the grant as determined by 
     the participating Federal agencies. The amount of a renewal 
     grant under this paragraph may be up to 50 percent of the 
     cost of the activities to be carried out by the grantee.
       ``(6) Federal matching.--
       ``(A) In general.--A grant under this subtitle shall be 
     available to pay the Federal share of the costs incurred by 
     the grantee for activities under this subtitle.
       ``(B) Federal share.--For purposes of subparagraph (A), the 
     Federal share shall be--
       ``(i) 75 percent of the cost of the program for the first 
     year of the grant;
       ``(ii) 75 percent for the second year of the grant; and
       ``(iii) 50 percent for each succeeding year, including each 
     year of a renewal grant term under paragraph (5).
       ``(C) Non-federal share.--The non-Federal share of costs 
     incurred by the grantee may be in cash or in-kind, as 
     appropriate.
       ``(7) Geographic distribution.--The participating Federal 
     agencies shall ensure that consideration is given to 
     geographic distribution (such as urban and rural areas) in 
     the awarding of grants under subsection (a).
       ``(8) Disclosure.--Section 12(a) of the Department of 
     Housing and Urban Development Act (42 U.S.C. 3537a(a)) shall 
     not apply to this subtitle.
       ``(g) Authorization of Appropriations.--
       ``(1)  Fiscal year 2005.--There are authorized to be 
     appropriated to carry out this subtitle $70,000,000 for 
     fiscal year 2005, of which--
       ``(A) $50,000,000 is authorized to be appropriated to the 
     Department of Housing and Urban Development;
       ``(B) $10,000,000 is authorized to be appropriated to the 
     Department of Health and Human Services; and
       ``(C) Not more than $10,000,000 is authorized from the 
     amounts to be appropriated to the Department of Veterans 
     Affairs for treatment of homeless veterans under medical care 
     to carry out section 495D.
       ``(2) Fiscal years 2006, 2007, and 2008.--There are 
     authorized to be appropriated to carry out this subtitle such 
     sums as may be necessary for each of fiscal years 2006, 2007, 
     and 2008.
       ``(h) Authority To Consolidate Funds.--
       ``(1) In general.--For purposes of carrying out this 
     subtitle, and in accordance with the agreement under 
     subsection (a), the participating Federal agencies are 
     authorized to transfer to the Secretary of Housing and Urban 
     Development funds appropriated for use under this subtitle, 
     and the Secretary of Housing and Urban Development may 
     receive such funds.
       ``(2) Rule of Construction.--Notwithstanding subsection 
     (g), in the event that funds are not appropriated for use in 
     accordance with this subtitle to one or more participating 
     Federal agencies in any fiscal year, paragraph (1) shall not 
     be construed to require a participating Federal agency that 
     has been provided with budget authority pursuant to 
     subsection (g) in a fiscal year to use such budget authority 
     to fund grants for activities that are not in accordance with 
     the primary mission of such participating Federal agency.
       ``(i) Technical Assistance and Support.--In addition to 
     funds otherwise provided for agency administrative costs, not 
     more than 2 percent of amounts appropriated for the 
     activities under this subtitle may be used by the 
     participating Federal agencies for administrative costs, 
     including costs associated with--
       ``(1) providing technical assistance to applicants and 
     grantees; and
       ``(2) providing support and assistance in selecting and 
     assessing projects to carry out this subtitle, including any 
     preparation necessary for such selection and assessment.

     ``SEC. 495C. HOUSING ACTIVITIES.

       ``(a) Eligible Housing Activities.--Subject to section 
     495B, a grant under this subtitle shall be used for 
     activities in support of permanent housing for chronically 
     homeless persons, including the following:
       ``(1) Provision of housing.--
       ``(A) Acquisition.--The acquisition of occupancy-ready real 
     property.
       ``(B) Rehabilitation.--The minor rehabilitation of real 
     property for housing.
       ``(C) Operating costs.--The costs of operating a housing 
     project, including salaries and benefits, maintenance, 
     insurance, utilities, replacement reserve accounts, and 
     furnishings.
       ``(D) Leasing.--Leasing of an existing structure or 
     structures, or portions thereof to provide housing.
       ``(E) Housing counseling.--The costs of counseling and 
     advice services with respect to property maintenance, 
     financial management, and other such matters as may be 
     appropriate to assist chronically homeless persons in 
     obtaining housing.
       ``(2) Rental assistance.--Project-based or tenant-based 
     rental assistance for chronically homeless persons, which 
     assistance shall be provided to the extent practicable, and 
     administered in the manner provided under the rules and 
     regulations governing the provision of assistance under 
     section 8 of the United States Housing Act of 1937 (42 U.S.C. 
     1437f).
       ``(3) Other activities.--Such other activities as the 
     Secretary of Housing and Urban Development determines to be 
     appropriate.
       ``(b) Program Requirements for Housing Activities.--
       ``(1) Requirements concerning real property.--
       ``(A) Use restriction.--Each grantee under this subtitle 
     shall ensure that permanent housing for chronically homeless 
     persons that are acquired or rehabilitated with grant amounts 
     under this subtitle is used for such persons for not less 
     than 10 years.
       ``(B) Housing quality.--Each grantee under this subtitle 
     shall ensure that housing assisted with grant amounts 
     provided under this subtitle is decent, safe, and sanitary, 
     and complies with all applicable State and local housing 
     codes, building codes, and licensing requirements in the 
     jurisdiction in which the housing is located.
       ``(C) Prevention of undue benefit.--Subject to section 
     495B(e), the Secretary of Housing and Urban Development may 
     prescribe such terms and conditions as the Secretary 
     considers necessary to prevent grantees from unduly 
     benefiting from the sale or other disposition of projects, 
     other than a sale or other disposition resulting in the use 
     of a project for the direct benefit of chronically homeless 
     persons.
       ``(2) Homeless management information system.--Each grantee 
     shall be required to provide such information to the 
     appropriate administrator of the local homeless management 
     information system, as is necessary for the implementation 
     and operation of homeless management information systems.

     ``SEC. 495D. TREATMENT AND SUPPORT SERVICES.

       ``Subject to section 495B, a grant under this subtitle 
     shall be used to provide treatment and support services, 
     which may include the following:
       ``(1) Primary health services.--Primary health services, 
     including the following:
       ``(A) Physician and other services.--Health services 
     related to family medicine, internal medicine, pediatrics, 
     obstetrics, or gynecology that are furnished by physicians 
     and where appropriate, physicians' assistants, nurse 
     practitioners, or nurse midwives.
       ``(B) Diagnostic services.--Diagnostic laboratory and 
     radiological services.
       ``(C) Preventive services.--Preventive health services.
       ``(D) Emergency services.--Emergency medical services.
       ``(E) Access to pharmaceutical services.--Access to 
     pharmaceutical services.
       ``(2) Alcohol and drug abuse services.--Services or 
     activities designed to prevent, deter, reduce, or eliminate 
     substance abuse or addictive behaviors, including a 
     comprehensive range of personal and family counseling 
     methods, early interventions, methadone treatment for opiate 
     abusers, or detoxification for alcohol and other drug 
     abusers, and treatment services such as intake and 
     assessment, behavioral therapy and counseling, clinical and 
     case management, pharmacotherapies, and self-help and peer 
     support activities.
       ``(3) Mental health and counseling services.--Mental health 
     and counseling services, including services and activities 
     that apply therapeutic processes to personal, family, or 
     situational problems in order to bring about a positive 
     resolution of the problem or improved individual functioning 
     or circumstances, including crisis interventions, individual 
     supportive therapy, and prescription of psychotropic 
     medications or explanations about the use and management of 
     medications.
       ``(4) Outreach and engagement.--Outreach services including 
     extending services or help to homeless persons to develop a 
     relationship of trust and engage such persons into 
     appropriate service programs.
       ``(5) Information and referral.--Services or activities 
     designed to provide information about services and assistance 
     provided through public and private programs, including 
     Federal, State and local non-homeless targeted programs that 
     provide or financially support the provision of medical, 
     social, educational, or other related services, and a brief 
     assessment of client needs to facilitate appropriate 
     referrals.
       ``(6) Case management.--Case management services and 
     activities, including the arrangement, coordination, 
     monitoring, and delivery of services to meet the needs of 
     individuals who are homeless, including individual service 
     plan development, counseling, monitoring, securing and 
     coordinating services.
       ``(7) Other services.--Such other services as the Secretary 
     of Health and Human Services determines appropriate.

[[Page S9533]]

     ``SEC. 495E. VETERANS' BENEFITS.

       ``Subject to section 495B, the Secretary of Veterans 
     Affairs is authorized to provide eligible veterans with case 
     management services.

     ``SEC. 495F. AUTHORITY OF OTHER FEDERAL AGENCIES TO 
                   PARTICIPATE UNDER THIS SUBTITLE.

       ``Federal agencies other than the participating Federal 
     agencies may participate in the grant program established 
     under this subtitle to the extent that funds are appropriated 
     for such purpose to each agency.''.
                                 ______
                                 
      By Mr. SMITH (for himself, Mr. Bingaman, Mr. Conrad, Mr. Daschle, 
        Mr. Hatch, and Mr. Thomas):
  S. 2831. A bill to amend the Internal Revenue Code of 1986 and the 
Employee Retirement Income Security Act of 1974 to clarify that 
federally recognized Indian tribal governments are to be regulated 
under the same government employer rules and procedures that apply to 
Federal, State, and other local government employers with regard to the 
establishment and maintenance of employee benefit plans; to the 
Committee on Finance.
  Mr. SMITH. Mr. President, I rise today to speak about the need to 
clarify the legal status of employee benefit plans offered by Indian 
tribal governments.
  In the past, the pension and welfare benefit plans of Indian tribal 
governments enjoyed the same status as granted to state and local 
governments. However, in recent years, a legal cloud has developed over 
the status of these plans. Confusion has arisen regarding whether or 
not the existing definition of a governmental plan includes plans 
sponsored by Indian tribal governments. In part, this has been a result 
of the Internal Revenue Service's lack of guidance to tribal 
governments on this issue; the inconsistent practice of granting 
governmental plan status to plans sponsored by Indian tribal 
governments; and finally a January ``no ruling'' position by the 
Internal Revenue Service that places many plans in the status of 
operating without a current determination letter recognizing the 
legality of their plan. As a result, many tribal governments have 
limited their offering of such welfare and retirement benefits to 
employees.
  Today, I am introducing legislation--the Government Pensions 
Equalization Act--to remove this legal uncertainty by amending the 
definition of a governmental plan to explicitly include plans offered 
by Indian tribal governments. Indian tribes, like all employers, 
require legal certainty regarding the status of their employee benefit 
under the Internal Revenue Code and ERISA. Moreover, Indian tribes 
should be afforded the same sovereignty status given state and local 
governments.
  Governmental plans are relieved from many of the requirements 
governing the operation of tax qualified pension and welfare benefit 
plans. There are several reasons for this relief. Governments exist for 
the benefit of their citizens and are not subject to the profit and 
loss pressures affecting the private sector. Governments offer redress 
for grievances under their own judicial systems. Elected officials who 
are responsible for government benefit programs are directly 
accountable to their constituents via the ballot box. Governments often 
offer more generous benefit plans for key officers, such as judges, 
legislators, and key executive personnel as a means to gain the 
valuable services of these skilled individuals. They also offer special 
pensions for public safety officers who can retire at a relatively 
young age and short period of service. This flexibility is impossible 
without the special relief provided governmental plans.
  Indian tribal governments meet all the special protections, 
conditions, and needs I have described. This legislation clarifies once 
and for all that they should be afforded the same treatment as their 
state and local government counterparts.
  Passage of this legislation is an important step in the fight to 
protect the sovereignty of Indian country and to foster the ability of 
tribal governments to provide retirement security to their employees 
and nation. I look forward to President Bush signing this legislation 
into law. I ask unanimous consent that the text of the legislation be 
printed in the Record.
  There being no objection, the bill was ordered to be printed ion the 
Record, as follows:

                                S. 2831

       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 ``Governmental Pension Plan 
     Equalization Act of 2004''.

     SEC. 2. CLARIFICATION OF ``GOVERNMENTAL PLAN'' DEFINITIONS.

       (a) Amendment to Internal Revenue Code of 1986.--Section 
     414(d) of the Internal Revenue Code of 1986 (definition of 
     governmental plan) is amended by adding at the end thereof 
     the following new sentence: ``The term `governmental plan' 
     also includes a plan established or maintained for its 
     employees by an Indian tribal government (as defined in 
     section 7701(a)(40)), a subdivision of an Indian tribal 
     government (determined in accordance with section 7871(d)), 
     an agency or instrumentality of an Indian tribal government 
     or a subdivision thereof, or an entity established under 
     tribal, Federal, or State law which is wholly owned or 
     controlled by any of the foregoing.''.
       (b) Amendment to Employee Retirement Income Security Act of 
     1974.--Section 3(32)of the Employee Retirement Income 
     Security Act of 1974 (29 U.S.C. 1002(32)) is amended by 
     adding at the end the following new sentence: ``The term 
     `governmental plan' also includes a plan established or 
     maintained for its employees by an Indian tribal government 
     (as defined in section 7701(a)(40) of the Internal Revenue 
     Code of 1986), a subdivision of an Indian tribal government 
     (determined in accordance with section 7871(d) of such Code), 
     an agency or instrumentality of an Indian tribal government 
     or subdivision thereof, or an entity established under 
     tribal, Federal, or State law which is wholly owned or 
     controlled by any of the foregoing.''.

     SEC. 3. EXTENSION TO ALL GOVERNMENTAL PLANS OF CURRENT 
                   MORATORIUM ON APPLICATION OF CERTAIN 
                   NONDISCRIMINATION RULES APPLICABLE TO STATE AND 
                   LOCAL PLANS.

       (a) In General.--
       (1) Subparagraph (G) of section 401(a)(5) and subparagraph 
     (H) of section 401(a)(26) of the Internal Revenue Code of 
     1986 are each amended by striking ``section 414(d))'' and all 
     that follows and inserting ``section 414(d)).''.
       (2) Subparagraph (G) of section 401(k)(3) of such Code and 
     paragraph (2) of section 1505(d) of the Taxpayer Relief Act 
     of 1997 are each amended by striking ``maintained by a State 
     or local government or political subdivision thereof (or 
     agency or instrumentality thereof)''.
       (b) Conforming Amendments.--
       (1) The heading for section 401(a)(5)(G) of such Code is 
     amended to read as follows:
       ``(G) Governmental plans.--''.
       (2) The heading for section 401(a)(26)(H) of such Code is 
     amended to read as follows:
       ``(H) Exception for governmental plans.--''.
       (3) Section 401(k)(3)(G) of such Code is amended by 
     inserting ``Governmental plan.--'' after ``(G)''.

     SEC. 4. CLARIFICATION THAT TRIBAL GOVERNMENTS ARE SUBJECT TO 
                   THE SAME DEFINED BENEFIT PLAN RULES AND 
                   REGULATIONS APPLIED TO STATE AND OTHER LOCAL 
                   GOVERNMENTS, THEIR POLICE AND FIREFIGHTERS.

       (a) Amendments to Internal Revenue Code of 1986.--
       (1) Police and firefighters.--Subparagraph (H) section 
     415(b)(2) of the Internal Revenue Code of 1986 (defining 
     participant) is amended--
       (A) in clause (i) by inserting ``, Indian tribal government 
     (as defined in section 7701(a)(40)),'' after ``State'', and
       (B) in clause (ii)(I) by inserting ``, Indian tribal 
     government,'' after ``State'' both places it appears.
       (2) State and local government plans.--
       (A) In general.--Subparagraph (A) of section 415(b)(10) of 
     such Code (relating to limitation to equal accrued benefit) 
     is amended by inserting ``, Indian tribal government (as 
     defined in section 7701(a)(40)),'' after ``State''.
       (B) Conforming amendment.--The heading for section 
     415(b)(10) of such Code is amended to read as follows:
       ``(10) Special rule for state, indian tribal, and local 
     government plans.--''.
       (3) Government pick up contributions.--Paragraph (2) of 
     section 414(h) of such Code (relating to designation by units 
     of government) is amended by inserting ``, Indian tribal 
     government (as defined in section 7701(a)(40)),'' after 
     ``State''.
       (b) Amendments to Employee Retirement Income Security Act 
     of 1974.--Section 4021(b)of the Employee Retirement Income 
     Security Act of 1974 (29 U.S.C. 1321(b)) is amended--
       (1) in paragraph (12), by striking ``or'' at the end;
       (2) in paragraph (13), by striking ``plan.'' and inserting 
     ``plan; or''; and
       (3) by adding at the end the following new paragraph:
       ``(14) established and maintained for its employees by an 
     Indian tribal government (as defined in section 7701(a)(40) 
     of the Internal Revenue Code of 1986), a subdivision of an 
     Indian tribal government (determined in accordance with 
     section 7871(d) of such Code), an agency or instrumentality 
     of an Indian tribal government or subdivision thereof, or an 
     entity established under tribal, Federal, or State law which 
     is wholly owned or controlled by any of the foregoing.''.

[[Page S9534]]

     SEC. 5. EFFECTIVE DATE.

       The amendments made by this Act shall apply to years 
     beginning before, on, or after the date of the enactment of 
     this Act.

                          ____________________